Title: Kazakhstan Faces Intense Scrutiny in Money Laundering Probe

Kazakhstan, one of the most resource-rich nations in the world, is under increased scrutiny following a Mutual Evaluation Report (MER) on its efforts to combat money laundering and terrorist financing. The report, conducted by the Financial Action Task Force (FATF) and European Union's MONEYVAL, identified several areas of concern for the regional powerhouse:

## Areas of Concern

- **Supervision and enforcement**
  - Enhance supervisory framework
  - Regulate financial institutions and digital asset service providers adequately
- **Beneficial ownership**
  - Lack of a central registry for beneficial ownership information
- **Risk assessment**
  - Develop tailored strategies to address money laundering and terrorist financing risks
- **Legislation**
  - Prevent misuse of legal persons and arrangements
  - Improve coordination between law enforcement agencies and the prosecution service
  - Strengthen confiscation of proceeds and instrumentalities of crime

The evaluation, based on information provided by Kazakhstan and obtained during an on-site visit from September 12-30, 2022, highlighted several necessary improvements:

### Supervision and Enforcement
- Effective supervision and enforcement of anti-money laundering and counter-terrorist financing regulations, particularly in the financial sector and the digital economy

### Beneficial Ownership
- Lack of a central registry for beneficial ownership information

### Risk Assessment
- Increase capacity of the National Anti-Money Laundering Centre to assess money laundering and terrorist financing risks

### Legislation
- Effective legislation to prevent the misuse of legal persons and arrangements
- Better coordination between law enforcement agencies and the prosecution service
- Improvements in confiscating proceeds and instrumentalities of crime

## Pressure to Address Issues
Kazakhstan must report back to the FATF and MONEYVAL on its progress by December 2023. Failure to satisfactorily address the recommendations may result in FATF placing Kazakhstan on its "grey list," negatively impacting its financial sector and international reputation.

## Commitment to Improvement
It remains to be seen whether Kazakhstan will be successful in addressing the issues identified by the FATF and MONEYVAL. The fight against money laundering and terrorist financing is a continuous process and requires persistent efforts, resilience, and cooperation from all stakeholders. Kazakhstan must demonstrate its commitment to the global effort to combat these illicit activities.